After holding protests for long against the imposition of the GST on unstitched clothes, a large number of textile traders in Amritsar, once known as Manchester of India, have started approaching the District Excise and Taxation Office to get them registered.

Over 90 per cent of the VAT dealers have switched over to the new tax system.

A leading yarn manufacturer, Kamal Dalmia, said apart from five per cent GST on unstitched clothes, cotton and natural yarn, which were not covered under excise tax, would be charged five per cent GST and man-made yarn 18 per cent. In addition, apparel and readymade garments valuing less than Rs 1,000 will be charged five per cent and the products above Rs 1,000 will invite 12 per cent tax. Job work on apparel will attract 18 per cent GST.

The spate of taxes on the textile sector would make the readymade garments fall under the luxury segment.

District Excise and Taxation Commissioner (DETC) Harvinder Singh said that textile traders, who had been resisting the new tax, were now getting themselves registered for the GST. Out of 20,798 VAT dealers, over 19,000 have been registered under the new tax system.

Earlier, a dealer with over Rs 5 lakh taxable turnover used to get VAT registration. Now, only those dealers with over Rs 20 lakh turnover can apply for the GST. The GST has provided respite to marginal traders.

Singh said many VAT dealers had become ineligible to be listed under the GST due to their low annual turnover.

–  Apparel and Textile News, Apparel Talk, Indian Apparel